JPY is very weak. Overview for 29.03.2024

The Japanese yen, paired with the US dollar, appears relatively weak. The current USDJPY exchange rate stands at 151.40.

Today’s Consumer Price Index (CPI) statistics from Tokyo do not change the trajectory set by the Bank of Japan towards an interest rate hike. The components show that the decrease in energy prices and increase in food costs are moderate.

Core inflation in Tokyo rose by 2.4% in March, compared to 2.5% in February. Price growth has slowed but remains above the Bank of Japan’s 2% target. This allows for a return to discussions regarding further tightening the country’s monetary conditions.

Data from Tokyo are traditionally interpreted as a leading indicator for the main inflation release, which is scheduled for 19 April.

The increasing pressure from the US dollar has yet to be reflected in the JPY quotes.